Deferred Tax Liability Essay Assignment
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Deferred Tax Liability Essay Assignment
You have been given the trial balance for Monet plc together with the following information and been asked to prepare the financial statements for the year ended 30th June 2020.
The following information is also provided:
On 1st July 2019 Monet had a 1 for 10 rights issue at a price of £2.50. The rights were fully subscribed. The cash was correctly posted but the other side of the entry was taken to suspense. On 28th June 2020 the company then had a 1 for 20 bonus issue to utilize some of the share premium account. No entries have yet been made to reflect the bonus issue.
Closing inventory on site was initially valued at a cost of £168,430. Included within that figure are some items that cost £4,500. Due to obsolescence the sales director estimated at the reporting date that these would be sold for £2,500. On 13th July 2020, before the financial statements were approved, these items were sold for £1,800.
The tax expense for the year is £38,390. The balance on the trial balance represents an under provision of the previous year’s tax liability.
The deferred tax liability needs to be decreased to £51,650.
On 1st July 2019 Monet plc disposed of some old machinery for £1,250. The machinery had a cost of £9,000 and accumulated depreciation of £6,915. The only entries Monet plc has made so far with respect to this transaction are to credit the disposals account and debit administrative expenses.
Any profit or loss on disposal should be posted to cost of sales.
Plant and machinery is depreciated at 10% reducing balance. All depreciation should be charged to cost of sales. The factory depreciation has already been calculated and reflected in the trial balance.
During February 2020 the heating in the warehouse broke down and Monet had to hire some industrial heaters for two weeks at a total cost of £850. The cost was posted to administrative costs.
Monet plc sold goods to Haystack Ltd on a sale or return basis on 21st June 2020. The value of the sale was £6,500 but Haystack Ltd had up to 3 months to return the goods. Historically Haystack returns 10% of goods sold on this basis. The cost of the goods transferred was £3,800.
The only entry made was to recognize the £6,500 cash received and credit the full amount to revenue.
On 1st July 2019, Monet issued £120,000 of 5 year bonds for £105,000 before allowing for £5,000 of issue costs. The bond carries a coupon rate of 2.95% and has an effective interest rate of 7%. The £105,000 was recorded in the trial balance and debited to the cash account. No further entries have yet been made with respect to this loan.
On 14th July 2020 an employee lost a toe when a fork lift truck ran over his foot in the factory. The directors raised a provision of £6,400 on legal advice in order to be prudent as it was likely that the employee would sue for compensation.
Requirements
Considering all the information provided:
Prepare a Statement of profit or loss for the year ended 30th June 2020
Prepare a Statement of changes in equity for the year ended 30th June 2020
Prepare a Statement of financial position as at 30th June 2020
Skill Required:
Deferred Tax Liability Essay Assignment
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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